Poultry giant Sanderson Farms flagged "considerable optimism" over US crops, which had prompted it to cut thin its forward purchases of grain, even as a weather scare underpinned a rally in corn and soybean futures.

Joe Sanderson, the chairman and chief executive of the US-based group, said that the company had "priced out grain needs through August, but will be on the market for our needs starting in September". September starts next week.

The strategy reflects a shortening in forward coverage from that revealed in May, when Mr Sanderson said that the group had "priced our needs through July".

And it comes amid a rally in grain prices from multi-month lows reached earlier in August, with December corn futures on Tuesday staying close to t $5 a bushel, which they closed above in the last session for the first time in a month.

November soybeans hit an 11-month high of $13.98 a bushel on Monday, up more than $2 a bushel from an early-August low.

'Considerable optimism'

The price rises have been fuelled by concerns for US crops, amid expectations for unusually hot conditions this week, with little rain relief, after a decline in corn and soybean condition already reported for last week.

However, even if it bought its outstanding feed grains needs for the August-to-October quarter at Monday's prices, Sanderson Farms faces a bill for the period down $65m year on year, Mr Sanderson said.

In August last year, front-month soybean futures hit $17.94 ¾ a bushel in Chicago, and spot corn a record $8.43 ¾ a bushel.